Buying a Foreclosure home in Houston Tx? Remember these points
If you are in the market for a foreclosure home Houston Tx then you will find it replete with them. Buying a foreclosed home is a good idea because it can help build equity. For example, if you purchase a foreclosure home in Houston, Tx for $60,000 when it is actually worth $100,000, then the balance is your net worth. This is your equity; you can either rent out this property for a steady income and a positive cash flow, or sell the property and move onto the next.
You can buy HUD homes as well
If you are in the market for Houston homes with low market value, then choosing a HUD home would also be a good idea. A HUD home is called so when the FHA forecloses it, so it is not a bank foreclosed home. In such cases, the Federal Housing and Urban Development would pay off the loan, and then place it on the market. Such homes would be auctioned off to the most promising buyers. It could be anything – single family homes, multi-family, and condos. In short, a HUD home is a home repossessed by the Government and so they would also like to sell it off quickly.
Keep in mind these factors when you are in the market for a foreclosed home:
There won’t be any disclosures
A bank foreclosed property wouldn’t give you any information about the previous seller. So you will have to learn about the home, the neighborhood and the surrounding areas through your own research. If you want to know the title report then inquire about the past permits and records from the Land records.
You will have to fix things yourself
Remember, a foreclosure home in Houston, TX will always need repairs. The seller is moving out because he cannot make the mortgage, and the bank will not help with the repairs. As a buyer you have to delve into your pocket for that. You can enjoy your profit, once the repairs are done, and you get to sell the home. As you are buying an “as-is” property things will be as the “seller” left it. However, the silver lining here is that you can inspect the property and see what kind of a home you are buying and the repairs it might need.
The home will be stripped bare
The seller will move out a depressed man. So don’t expect the home to be in a pristine condition. You will not find any expensive light fixtures or fine home appliances in the home. There are sellers who might feel so bad about leaving the property that they might even attempt to damage it.
The process is impersonal
The deal is with the bank and not with any personal seller. The process is almost mechanical and automatic. For the bank, it is just a property they want to get rid of. And for the investor, most probably, it would be an investment possibility.
Conclusion
Foreclosure homes in Houston, Tx have their own appeal and it is always a clever investment option when traded carefully. Just make sure that you prepare well, or you might land with something less than you bargained for.